Trying to figure out how reliable Joe Ross' 1-2-3 technique is with respect to crypto trading. I know old school traders have been using it a lot with >70% success rate.
The definitions are simple and must be followed precisely.
Details on the technique can be found here: technical.trade...ine/display.asp?art=2962
The definitions are simple and must be followed precisely.
Details on the technique can be found here: technical.trade...ine/display.asp?art=2962
Comment:
Ok, so in theory, the stop-loss should've been placed just below point 3, but that would've been triggered 4 candles after entry. My guess is that the volatility of crypto is too much for this kind of tight stop losses, so a broader stop-loss approach should be used so that you don't get stopped out of perfectly good set-ups (keep in mind the ETH flash drop in August to 19$ due to stop-loss chain reaction)
Comment:
Interestingly enough, the candle which confirmed the 3 point and triggered the entry, is also marked by a MACD cross, with bullish indication.
Trade closed manually:
If anyone entered this trade, now would be a safe place to close and secure the profits. Stoch RSI is overbought and turning downwards. MACD is losing strength also. Similar patterns shown with BTC pair.
